What is the impact of non-farm data on the gold market?
Non-farm data actually consists of two sets of data, the major non-farm data and the minor non-farm data. As these two sets of data reflect the development of the US economy, they not only affect the US dollar index but also often impact the ups and downs of the gold market.
Good non-farm data indicates a strong economy and is bearish for gold, while poor non-farm data is bullish for the gold market. The major non-farm data is composed of three indicators published by the US Department of Labor's Bureau of Labor Statistics: non-farm employment, the employment rate, and the unemployment rate. Compared to minor non-farm data, the major non-farm data more directly reflects the current economic situation in the United States. Non-farm data is usually released on the first Friday evening of each month, two days later than minor non-farm data. Investors typically wait for the release of the data and make judgments about the specific trend of gold prices to earn profits.
The impact of non-farm data on the gold market is mainly concentrated on these two points in time. The non-farm employment, employment rate, and unemployment rate can directly reflect the development and growth of the manufacturing and service industries in the United States. The better the economic development, the more likely it is to lead to a decline in gold prices, while poor economic development can lead to a certain degree of increase in gold prices.
Overall, non-farm data is just one set of data, so in practical operation, major and minor non-farm data can influence the trend of the gold market, but cannot truly determine the trend of the gold market.
Are you ready for the upcoming non-farm data release tomorrow?
Join the discussion channel to discuss together! Catching the opportunity is key.
Non-farm data actually consists of two sets of data, the major non-farm data and the minor non-farm data. As these two sets of data reflect the development of the US economy, they not only affect the US dollar index but also often impact the ups and downs of the gold market.
Good non-farm data indicates a strong economy and is bearish for gold, while poor non-farm data is bullish for the gold market. The major non-farm data is composed of three indicators published by the US Department of Labor's Bureau of Labor Statistics: non-farm employment, the employment rate, and the unemployment rate. Compared to minor non-farm data, the major non-farm data more directly reflects the current economic situation in the United States. Non-farm data is usually released on the first Friday evening of each month, two days later than minor non-farm data. Investors typically wait for the release of the data and make judgments about the specific trend of gold prices to earn profits.
The impact of non-farm data on the gold market is mainly concentrated on these two points in time. The non-farm employment, employment rate, and unemployment rate can directly reflect the development and growth of the manufacturing and service industries in the United States. The better the economic development, the more likely it is to lead to a decline in gold prices, while poor economic development can lead to a certain degree of increase in gold prices.
Overall, non-farm data is just one set of data, so in practical operation, major and minor non-farm data can influence the trend of the gold market, but cannot truly determine the trend of the gold market.
Are you ready for the upcoming non-farm data release tomorrow?
Join the discussion channel to discuss together! Catching the opportunity is key.
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What should be noted in non-farm trading?Firstly, the pre-non-farm market, which is the non-farm expectation market, predicts the non-farm market based on the ADP and initial jobless claims, which are leading indicators of non-farm data, as well as the US economic conditions. For example, if the ADP data and jobless claims are favorable for the US dollar, investors generally expect the non-farm data to perform well, which will suppress gold and silver. Therefore, investors can make early positioning
Secondly, the non-farm market can have a significant impact on the trend of gold prices in a moment after the data is released. If grasped correctly, it can also be the most profitable market, but it is also the most difficult for most investors to grasp profits. For this kind of market, it is recommended to adopt a bidirectional order strategy, place orders five minutes before the non-farm data is released, and set a profit-taking point of 10-18 points. It is essential to stop losses and take profits in a timely manner and never be greedy or hold positions for too long. This trading method requires quick action and decisiveness, and avoiding revenge trading to prevent non-farm market oscillation.
In addition, the second method is to quickly analyze the impact of the released value and the expected value on the future market after the non-farm data is released and operate accordingly. However, it is also recommended to stop losses and take profits in a timely manner to prevent repeated losses, and avoid chasing highs and selling lows when entering the market.
Thirdly, according to the result of the non-farm data, trade in the direction of the trend. Non-farm data also has a certain impact on the future trend of gold, which requires the combination of candlestick pattern and moving average system operation. If the released value differs greatly from the expected value, a one-way market may emerge.
Achieving risk control, profitability, and improvement should be the ultimate goal of non-farm trading to avoid trading troubles.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.